<PAGE>

                  SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C.  20549


                              Form 10-Q


                  Quarterly Report Under Section 13 or 15(d) 
                  of the Securities Exchange Act of 1934.


For Quarter Ended:  July 4, 1998    Commission file number:  0-7469


      
                        TJ INTERNATIONAL, INC.                           
------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)


DELAWARE                                                      82-0250992
---------------------------------                    -------------------
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                       Identification No.)


200 E. Mallard Drive
BOISE, IDAHO                                                       83706
---------------------------------                     ------------------
(Address of principal executive offices)                     (Zip Code)


Registrant's telephone number, including area code        (208) 364-3300
                                                      ------------------


      Indicate by check mark whether the registrant (1) has filed all
      reports required to be filed by Section 13 or 15(d) of the 
      Securities and Exchange Act of 1934 during the preceding 12 months
      (or for each shorter period that the registrant was required to 
      file such reports) and (2) has been subject to such filing 
      requirements for the past 90 days.  Yes  _X_    No  ___   
                                    

      Indicate the number of shares outstanding of each of the issuer's
      classes of common stock, as of the latest practicable date.  
      August 14, 1998:  16,053,797 shares of $1 par value common stock.

                                                EXHIBIT INDEX ON PAGE 16

<PAGE>

                        TJ INTERNATIONAL,  INC.

                  PART I.  Financial Information

The condensed consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission, under the Securities Exchange Act
of 1934, as amended.  In the opinion of management, all adjustments necessary
to present fairly the results for the periods presented have been included
therein.  The adjustments made were of a normal, recurring nature.  Certain
information and footnote disclosure normally included in financial statements
have been condensed or omitted in accordance with such rules and regulations,
although the Company believes that the disclosures are adequate to make the
information presented not misleading.  It is recommended that these condensed
financial statements be read in conjunction with the audited financial
statements and the notes thereto included in the Company's latest annual
report on Form 10-K.

The results of operations for the periods presented are not necessarily
indicative of the results that might be expected for the fiscal year ending
January 2, 1999.

<PAGE>
<TABLE>
<CAPTION>
                        TJ INTERNATIONAL, INC.  
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME   
                              (Unaudited) 

                             (amounts in thousands except per share figures)  
      <S>                     <C>         <C>         <C>         <C>
                                 For the fiscal       For the two fiscal      
                                  quarter ended          quarters ended
                              ----------------------- ---------------------
                              July 4,     June 28,    July 4,     June 28,    
                                1998        1997       1998        1997 
                              --------    --------    --------    --------
                                                            
Sales                         $193,361    $185,730    $379,190    $346,993    
                              --------    --------    --------    --------    
                                                      
Costs and expenses                                                
      Cost of sales            139,064     134,598     274,587     252,521    
      Selling expenses          19,315      19,216      38,890      36,299    
      Administrative expenses    9,403       8,762      19,013      17,324    
                              ---------   ---------   ---------   ---------
                               167,782     162,576     332,490     306,144    
                              ---------   ---------   ---------   ---------   

Income from operations          25,579      23,154      46,700      40,849    
                  
Investment income, net           1,798         876       3,757       1,288    
                  
Interest expense                (2,223)     (1,564)     (4,539)     (3,113)
                                                            
Minority interest in
Partnership                    (12,220)    (10,480)    (22,067)    (18,275)
                              ---------   ---------   ---------   ---------   
                  
Income before income taxes      12,934      11,986      23,851      20,749    

Income taxes                     4,850       4,495       8,944       7,781    
                              ---------   ---------   ---------   ---------
Net income                    $  8,084    $  7,491    $ 14,907    $ 12,968    
                              ---------   ---------   ---------   ---------
                                    
Net income per common share                                             
     Basic                    $   0.46    $   0.42    $   0.85    $   0.72
                              ---------   ---------   ---------   ---------   
     Diluted                  $   0.43    $   0.39    $   0.79    $   0.67
                              ---------   ---------   ---------   ---------   
            
Dividends declared per 
common share                  $ 0.0550    $ 0.0550    $   0.11    $   0.11    
                              ---------   ---------   ---------   ---------   
                                                            
Weighted average number of 
common shares outstanding 
during the periods                                                      
     Basic                                              16,981      17,295
                                                      ---------   ---------   
     Diluted                                            18,554      18,814    
                                                      ---------   ---------
                                          
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.    
</TABLE>          

<PAGE>

                              TJ INTERNATIONAL, INC.  
                        CONDENSED CONSOLIDATED BALANCE SHEETS     
                                    (UNAUDITED) 

<TABLE>
<CAPTION>
      
                              (AMOUNTS IN THOUSANDS)  
      
<S>   <C>                           <C>         <C>         <C>

                                    July 4,     January 3,  June 28,    
ASSETS                               1998         1998        1997      
Current assets    
Cash and cash equivalents           $ 139,980   $ 119,087   $  70,875   
Marketable securities                     ---      40,751         ---   
Receivables, less allowances of
      $394, $397 and $403              88,495      55,369      81,623   
Inventories                            77,548      68,954      51,649   
Other                                  14,468      10,923      11,540
                                    ----------  ----------  ----------  
                                      320,491     295,084     215,687   
Property    
      Property and equipment          616,603     603,693     580,174   
      Less - Accumulated
      depreciation                   (240,310)   (223,207)   (202,711)
                                    ----------  ----------- ----------  
                                      376,293     380,486     377,463   
      
Goodwill                               18,980      19,500      20,020   
Other assets                           17,620      17,034      23,676   
                                    ----------  ----------- ----------
                                    $ 733,384   $ 712,104   $ 636,846
                                    ==========  =========== ==========  
      
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities     
      Accounts payable              $  33,926   $   25,238  $  33,551   
      Accrued liabilities              46,290       50,641     46,397   
                                    ----------  ----------- ----------
                                       80,216       75,879     79,948   
      
Long-term debt                        142,390      142,390     99,790   
Other long-term liabilities            19,917       18,336      6,050   
Reserve for discontinued operations    13,955       17,482     18,945

Minority interest in Partnership      228,268      216,605    205,394   
      
Stockholders' equity    
ESOP Convertible Preferred Stock,
      $1.00 par value, authorized
      10,000,000 shares, issued 
      1,136,219, 1,147,219, and 
      1,156,947                        13,405       13,535     13,650   
Guaranteed ESOP Benefit                (8,188)      (8,188)    (9,204)  
Common stock, $1.00 par value, 
      authorized  200,000,000 
      shares, issued 17,947,065,    
      17,807,142, and 17,707,180       17,947       17,807     17,707   
Paid-in capital                       157,570      153,936    150,602   
Retained earnings                      98,712       86,116     73,839   
Other                                  (1,865)      (1,730)    (1,687)  
Accumulated other comprehensive 
      income (loss)                    (5,148)      (3,805)    (3,188)  
Common stock in treasury, 
      1,034,355, 761,152, and 
      711,152 shares, at cost         (23,795)     (16,259)   (15,000)  
                                    ----------  ----------- ----------
                                      248,638      241,412    226,719   
                                    ----------  ----------- ----------
                                    $ 733,384   $  712,104  $ 636,846   
                                    ==========  =========== ==========        
            
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.    

</TABLE>
<PAGE>

                              TJ INTERNATIONAL, INC.  
                        CONSOLIDATED STATEMENTS OF CASH FLOWS     
            FOR THE FISCAL QUARTERS ENDED JULY 4, 1998, AND JUNE 28, 1997     
                                  (Unaudited)
                             (amounts in thousands)   

<TABLE>
<CAPTION>
            
                                          July 4,           June 28,    
                                           1998              1997       
                                      -------------         ------------      
      
      <S>                           <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                          $     14,907          $     12,968  
Adjustments to reconcile net 
income to net cash provided 
by operating activities:                        

      Depreciation and amortization       22,214                20,608         
      Minority interest in partnership    22,067                18,275  
      Other, net                           2,040                 1,787

Change in working capital items:                      
      Receivables                       (33,126)                (7,730)
      Inventories                         (8,594)                 (100)
      Other current assets                (3,545)               (1,799)
      Accounts payable and 
      accrued liabilities                  4,022                18,940
Other, net                                (3,678)               (1,064)       
                                       -----------          ------------      
Net cash provided by operating 
      activities                    $     16,307            $   61,885        
                                       ===========          ============      
      
                                          
CASH FLOWS FROM INVESTING ACTIVITIES                        
      Capital expenditures          $    (18,006)           $  (15,957)
      Sales of marketable securities      40,751                 ----- 
      Other, net                            (966)                 (731) 
                                       -----------          ------------      
      Net cash provided by (used in) 
        investing activities        $     21,779            $  (16,688)
                                       ===========          ============      
      
                              
CASH FLOWS FROM FINANCING ACTIVITIES            
      Cash dividends paid on common 
            stock                   $     (1,873)           $   (1,914)
      Cash dividends paid on 
            preferred stock               -----                 (1,245)
      Minority partners tax 
            distributions                (8,020)                (4,996)
      Net borrowings under 
            lines-of-credit                -----                    96
      Proceeds from the issuance 
            of long-term debt              -----                11,650
      Purchase of treasury stock          (7,536)              (15,000)       
      Other, net                             236                   286
      Net cash used in financing      ------------          ------------
            activities              $   (17,193)            $  (11,123)       
                                      ============          ============
                  
Net change in cash and cash equivalents               
      Net increase in cash and cash
            equivalents             $     20,893            $   34,074

      Cash and cash equivalents 
            at beginning of year        119,087                 36,801
                                      ------------          ------------      
      Cash and cash equivalents 
            at end of period        $   139,980             $   70,875  
                                      ============          ============

Supplemental disclosures of cash 
      flow information
            
      Cash paid during the period for:
            Interest, net of amounts 
            capitalized             $      5,198            $    3,095
            Income taxes            $      6,597            $      534
            
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

</TABLE>

<PAGE>            

                         TJ INTERNATIONAL, INC.
            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              (Unaudited)

<TABLE>
<CAPTION>

INVENTORIES

Inventories consisted of the following:
                                                                              
                                              (amounts in thousands)
      <S>                           <C>         <C>         <C>   
                                    July 4,     Jan. 3,     June 28,          
                                     1998        1998         1997    
                                    -------     -------     --------

      Finished goods                $57,769     $51,737     $39,412
      Raw materials and              19,779      17,217      12,237
        work-in-progress            -------     -------     --------           
                                     77,548      68,954      51,649
      Reduction in LIFO cost              -           -           -
                                    -------     --------    --------
                                    $77,548     $68,954     $51,649
                                    =======     ========    ========      

</TABLE>
                        
The determination of inventory under the LIFO method can be made only at the
end of each fiscal year based on the inventory levels and costs at that time.
Accordingly, interim LIFO calculations must necessarily be based on the
Company's estimates of expected year-end inventory levels and costs.  Since
these estimates are subject to many forces beyond the Company's control,
interim results could possibly be affected by the final year-end LIFO
inventory valuation.

<PAGE>

NET INCOME PER COMMON SHARE:

Basic net income per common share is based on net income adjusted for
preferred stock dividends and related tax benefits divided by the weighted
average number of common shares outstanding.  Diluted net income per common
share assumes conversion of the Employee Stock Ownership Plan (ESOP)
convertible preferred stock (ESOP preferred stock)into common stock at the
beginning of the fiscal year and weighted average number of common shares
outstanding after giving effect to stock options under the treasury stock
method.

Basic net income and diluted net income were calculated as follows:


<TABLE>
<CAPTION>
                                              (amounts in thousands)
      <S>                           <C>         <C>         <C>   
                                 For the fiscal       For the two fiscal
                                 quarter ended        quarters ended  
                              -------------------     -----------------
                              July 4,     June 28,    July 4,   June 28,
                              1998        1997        1998      1997
                              -------------------     -----------------
<S>                           <C>         <C>         <C>         <C>   
BASIC NET INCOME  
                                                                  
Net income as reported        $ 8,084     $ 7,491     $14,907     $12,968     

Preferred stock dividends, net
   of related tax benefits       (250)       (246)       (503)       (494)
                              -------     -------     -------     ---------
 
    
Basic net income              $ 7,834     $ 7,245    $ 14,404     $12,474  
                              
                              =======     =======     ========    ========
DILUTED NET INCOME             


Net income as reported        $ 8,084     $ 7,491    $ 14,907     $12,968

Additional ESOP contribution
   payable upon assumed
   conversion of ESOP
   preferred stock, net of
   related tax benefits          (165)       (174)       (331)      (348)  
                              -------     -------    --------   ---------

Diluted net income            $ 7,919     $ 7,317     $14,576     $12,620 
                              =======     =======     ========    ========
                                                                             
</TABLE>
<PAGE>

COMPREHENSIVE INCOME (LOSS)

Comprehensive income for the periods include the following:

<TABLE>
<CAPTION>
                                              (amounts in thousands)
      <S>                           <C>         <C>         <C>   
                                 For the fiscal       For the two fiscal
                                 quarter ended        quarters ended  
                              -------------------     -----------------
                              July 4,     June 28,    July 4,   June 28,
                              1998        1997        1998      1997
                              -------------------     -----------------
<S>                           <C>         <C>         <C>         <C>
Net income                    $ 8,084     $ 7,491     $14,907     $12,968   
Other Comprehensive Loss       (1,290)         (9)     (1,343)       (408)
                              -------     -------     -------     -------
      
Comprehensive Income          $ 6,794     $ 7,482     $13,564     $12,560
                              =======     =======     =======     =======

            
</TABLE>

Accumulated other comprehensive income (loss) for each period ended was as
follows:

<TABLE>
<CAPTION>
                                        (amounts in thousands)
      
                                    July 4,     Jan. 3,     June 28,          
                                     1998        1998         1997    
                                    -------     -------     --------
<S>                                 <C>         <C>         <C>
Balances at beginning of period-    
  cumulative translation adjustment $(3,805)    $(2,780)    $ (2,780)

Changes within periods-
  cumulative translation adjustment  (1,343)     (1,025)        (408)
                                    -------     -------     --------
Balance at end of period-
  cumulative translation adjustment $(5,148)    $(3,805)    $ (3,188)   
                                    =======     =======     ========

</TABLE>

RECENTLY-ISSUED ACCOUNTING STANDARDS

In June 1997, the Financial Accounting Standards Board issued Statement No.
131 Disclosures about Segments of an Enterprise and Related Information ("SFAS
No. 131").  SFAS No. 131 requires publicly-held companies to report segment
and other information which is utilized by the Chief Executive Officer and to
reconcile the segment information to financial statement amounts.  SFAS No.
131 is effective for the Company for the year ending January 2, 1999.  The
Company is evaluating the impact of this new standard on its reporting and
disclosure.

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, Accounting for Derivative Instruments
and Hedging Activities.  The Statement establishes accounting and reporting
standards requiring that every derivative instrument (including certain
derivative instruments embedded in other contracts) be recorded in the balance
sheet as either an asset or liability measured at its fair value.  The
Statement requires that changes in the derivative's fair value be recognized
currently in earnings unless specific hedge accounting criteria are met. 
Special accounting for qualifying hedges allows a derivatives gains or losses
to offset related results on the hedged item in the income statement, and
requires that a company must formally document, designate, and assess the
effectiveness of transactions that receive hedge accounting.  Statement 133 is
effective for fiscal years beginning after June 15, 1999.  The Company has not
yet quantified the impact of adopting Statement 133 on our financial
statements and have not determined the timing of or method of our adoption of
Statement 133.  However, the Statement could increase volatility in earnings
and other comprehensive income.

<PAGE>



                              TJ INTERNATIONAL, INC.
                        MANAGEMENT'S DISCUSSION AND ANALYSIS
                  FOR THE FISCAL QUARTER ENDED JULY  4, 1998

OPERATING RESULTS

TJ International, Inc., (the Company) is the 51 percent owner and managing
partner of Trus Joist MacMillan a Limited Partnership (TJM), the world's
leading manufacturer and marketer of engineered lumber products. 
Substantially all of the Company's operating assets are held and revenue
generated by TJM.  MacMillan Bloedel Limited (MB) owns a 49 percent interest
in TJM.

The following comments discuss material variations in the results of
operations for the comparative periods presented in the condensed consolidated
statements of income.

SALES

The Company's sales by quarter during the current year and for the preceding
four years are as follows:

<TABLE>
<CAPTION>
                              Sales by Quarter
                              ----------------
                           (amounts in thousands)
<S>         <C>         <C>         <C>         <C>         <C>
QUARTER       1998        1997        1996        1995        1994      
            --------    --------    --------    --------    --------

First       $185,829    $161,263    $111,157    $109,941    $118,163    
Second       193,361     185,730     155,050     123,882     128,773     
Third                    185,576     179,571     137,759     136,266 
Fourth                   173,747     131,388     113,263     112,858     
            --------    --------    --------    --------    --------
            $379,190    $706,316    $577,166    $484,845    $496,060    
            ========    ========    ========    ========    ========
</TABLE>

SECOND QUARTER OF 1998 COMPARED WITH THE SECOND QUARTER OF 1997

Second quarter sales increased $7.6 million or 4% from the prior year second
quarter despite the challenging market conditions of declining prices for
competing commodity solid sawn lumber.  Prices for 2x10 Douglas fir green
lumber were down on average 35% from the prior year second quarter.  Prices
for 2x10 southern yellow pine were down on average 12%.  Although the price of
competing lumber products was significantly lower during the quarter, the
Company continued to grow and convert builders to engineered lumber from
traditional solid-sawn lumber.  The factors driving this continued growth are
the better performance, superior quality and value of engineered lumber as
compared to the lower-priced commodity lumber alternative.

Other factors affecting sales in the second quarter included a reduction in
inventory levels by several of the Company's key distribution customers. 
These customers satisfied builder demand for products during the quarter by
drawing on their inventory rather than ordering from the Company.  In
addition, wet weather conditions, particularly on the West Coast, delayed
delivery of engineered lumber framing materials to many building sites.  Sales
to customers in the Pacific Rim also slowed significantly from the levels sold
in the second quarter of last year.

<PAGE>

Unit volume growth accounted for virtually all the sales increase for the
second quarter of 1998.  Prices in the second quarter were down approximately
1% from the second quarter of 1997.  Volume gains were strongest in the
Company's TJI-Registered Trademark- Joist products.  

Gross margins for the second quarter of fiscal 1998 were 28.1% compared with
27.5% in the second quarter of 1997.  Margin gains were the result of lower
raw material costs for veneer and improved operating efficiencies at many of
the Company's manufacturing plants.  In addition, margin gains were the result
of higher throughputs and reduced production costs at the Company's new
technology TimberStrand-Registered Trademark- LSL plants in the second quarter
compared to second quarter last year.  Higher prices for the Company's new
technology products were also realized during the quarter as the Company
continued to execute its plan to transition to higher value products.  These
products include TimberStrand-Registered Trademark- LSL headers and door
components, as well as the Company's TJI-Registered Trademark- Pro 120 TS,
which uses TimberStrand-Registered Trademark- LSL as a flange material in the
joist.

Offsetting some of these improvements was an increase in the cost for
Performance Plus OSB, which is used as the web material in the Company's TJI-
Registered Trademark-joist products.  Commodity OSB prices increased on
average 53% from the second quarter of 1998 as compared to the prior year's
second quarter.  At quarter end, the price trend for OSB continued upward.

Selling expenses increased $0.1 million, from $19.2 million in the second
quarter 1997 to $19.3 million in the second quarter 1998, but declined as a
percent of sales to 10% from 10.3% in 1997.  General and administrative
expenses increased to $9.4 million in the second quarter 1998 from $8.8
million in the prior year's quarter.  This increase in spending is primarily
driven by the Company's investment in business support software which is
intended to provide the infrastructure for future growth.

Minority interest expense increased $1.7 million from 1997 due to the increase
in earnings at the Trus Joist MacMillan (TJM) Partnership.

FIRST TWO QUARTERS OF 1998 COMPARED WITH THE FIRST TWO QUARTERS OF 1997

Sales for the first half of 1998 increased by $32.2 million or 9.3% from the
comparable period last year. Unit volume sales growth accounted for the
majority of the increase due to increased acceptance of the Company's
engineered lumber products.

Gross margins increased from 27.2% to 27.6% between the two periods. Improved
performance at the Company's two new plants represented the majority of the
improvement.

Selling expenses increased $2.6 million or 7.1%,  but declined as a percentage
of sales from 10.5% to 10.3%.  General and administrative expenses increased
$1.7 million; but a percentage of sales remained flat at 5.0%.

LIQUIDITY AND CAPITAL RESOURCES

JULY 4, 1998 COMPARED TO JANUARY 3, 1998

Working capital increased $21 million during the first half of 1998 to $240
million.  The increase was primarily driven by the Company's increase in
accounts receivable as a result of increased sales volume, as well as the
Company's seasonal investment in inventory as the traditional building season
gains full momentum.  Cash flows from operations were $16.3 million.

<PAGE>

JULY 4, 1998 COMPARED TO JUNE 28, 1997

Working capital increased $105 million from the prior year, to $240 million at
July 4, 1998.  The increase was due to additional debt issued in the fourth
quarter of 1997 (described below), strong cash flow from operations combined
with a modest capital program and an increase in inventory levels aimed at
improving service levels and reducing lead times to customers.

The Company completed construction in late 1997 of a TimberStrand-Registered
Trademark- LSL - flange I-line at its East Kentucky location.  The new
production facility will allow the Company to produce traditional I-joist
products, using TimberStrand-Registered Trademark- LSL as the top and bottom
flange material.  The plant ramp up is on schedule, with market introduction
of this product in the first quarter 1998.  The additional I-line required a
capital investment of approximately $16.5 million in 1997.

Also in 1997, the Company began construction of a Microllam-Registered
Trademark- LVL, TJI-Registered Trademark- Joist plant located in Evergreen,
Alabama, with production scheduled to begin late in the fourth quarter of
1998.  The new production facility will allow the Company to produce
traditional Microllam-Registered Trademark- LVL and TJI-Registered Trademark
Joist products.  The plant will require a capital investment of approximately
$45 million.   

The Company is evaluating potential sites for a third TimberStrand-Registered
Trademark- LSL plant but has not determined whether or when to proceed with
construction.  The Company believes that current cash balances, cash generated
from operations, and borrowing under a $150 million Revolving Credit Facility
will be sufficient to meet the on-going operating and capital expansion needs
of the Company.  The Company also believes that additional or expanded lines
of credit or appropriate long-term capital can be obtained to fund other major
capital requirements as they arise, or to fund an acquisition.

In the first quarter 1998, the Board of Directors authorized the Company to
purchase $3.1 million of treasury stock.  In addition, at the Company's Board
of Directors meeting held on May 27, 1998 the Board authorized the Company to
purchase $35 million of treasury stock, of which the Company purchased $4.4
million in the second quarter of 1998.

For 1997, the Company's Board of Directors authorized the purchase of up to
$15 million of the Company's common stock at market prices. The Company
purchased $8.3 million of treasury stock during the first quarter of 1997 and
$6.7 million of stock during the second quarter of 1997 completing the stock
purchase plan.  In addition, the Board of Directors authorized and the Company
purchased an additional $1.3 million of stock during the third quarter of
1997.  

In the fourth quarter of 1997, the Company issued $42.6 million of taxable
notes to preserve the Company's ability in the future to issue additional
industrial revenue bonds to help finance the East Kentucky
TimberStrand-Registered Trademark- LSL plant.  The taxable notes are due in a
single maturity on November 15, 2001, subject to prepayment at the option of
the Company, and are unsecured. In addition, during the second quarter of
1997, the Company issued $11.65 million of industrial revenue bonds associated
with the construction of the East Kentucky plant.  The bonds are due in a
single maturity in 2027, with interest payable semi-annually at 6.55%.

The Company sold its windows operations in 1996, however, it retained certain
liabilities related to these operations.  Management believes that existing 

<PAGE>

reserves are adequate to meet all subsequent liabilities that may arise
related to the discontinued operations.

Substantially all of the Company's operating assets are held, and revenue
generated, by its TJM partnership.  The partnership regularly distributes cash
to the partners to fund the tax liabilities generated by the partnership at
the corporate level.  All other distributions of cash by the partnership are
dependent on the affirmative votes of the representatives of the minority
partner.  Accordingly, there can be no assurance that such distributions will
be approved and thereby be available for the payment of dividends or to fund
other operations of the Company. 

INDUSTRY, COMPETITION, AND CYCLICALITY

The Company's engineered lumber products continue to gain market acceptance as
high-quality alternatives to traditional solid-sawn lumber products.  Through
the Company's intensive marketing efforts, builders and other wood users are
increasingly recognizing the consistent quality, superior strength, lighter
weight, and ease of installation of engineered lumber products.  The Company
believes that this trend will continue well into the future.

No other company possesses the range of engineered lumber products, the levels
of service and technical support, or the second generation technologies of
TimberStrand-Registered Trademark- LSL or Parallam-Registered Trademark- PSL. 
There are, however, a number of companies, including several large forest
products companies, that now produce look-alike wood I-joist and laminated
veneer lumber products.  Several of these companies have announced capacity
expansions.  These look-alike products are manufactured using processes
similar to the Company's oldest generation technologies. 

The Company believes its network of manufacturing plants and multiple
technologies position it as the low-cost producer of engineered lumber.  While
competition helps expand the market for engineered wood products, including
those manufactured by the Company, it may also make the existing markets more
price competitive.  Traditional wide-dimension lumber, however, remains the
predominant structural framing material used in residential construction and
is the primary competitor of the Company's products.  Commodity lumber prices
historically have been subject to high volatility, and during periods of
significant lumber price movements the Company's prices have trended in the
same direction.

The Company's operations are strongly influenced by the cyclicality and
seasonality of residential housing construction.  This industry experiences
fluctuations resulting from a number of factors, including the state of the
economy, consumer confidence, credit availability, interest rates, and weather
patterns. Consistent with the seasonal pattern of the construction industry as
a whole, the Company's sales have historically tended to be lowest in the
first and fourth quarters and highest in the second and third quarters of each
year.

RECENTLY ISSUED ACCOUNTING STANDARDS

In June 1997, the Financial Accounting Standards Board issued Statement No.
131 Disclosures about Segments of an Enterprise and Related Information ("SFAS
No. 131").  SFAS No. 131 requires publicly-held companies to report segment
and other information which is utilized by the Chief Executive Officer and to
reconcile the segment information to financial statement amounts.  SFAS No.
131 is effective for the Company for the year ending January 2, 1999.  The
Company is evaluating the impact of this new standard on its reporting and
disclosure.

<PAGE>

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, Accounting for Derivative Instruments
and Hedging Activities.  The Statement establishes accounting and reporting
standards requiring that every derivative instrument (including certain
derivative instruments embedded in other contracts) be recorded in the balance
sheet as either an asset or liability measured at its fair value.  The
Statement requires that changes in the derivative's fair value be recognized
currently in earnings unless specific hedge accounting criteria are met. 
Special accounting for qualifying hedges allows a derivatives gains or losses
to offset related results on the hedged item in the income statement, and
requires that a company must formally document, designate, and assess the
effectiveness of transactions that receive hedge accounting.  Statement 133 is
effective for fiscal years beginning after June 15, 1999.  The Company has not
yet quantified the impact of adopting Statement 133 on our financial
statements and have not determined the timing of or method of our adoption of
Statement 133.  However, the Statement could increase volatility in earnings
and other comprehensive income.

FORWARD-LOOKING STATEMENTS

This Form 10-Q includes a number of "forward-looking statements" as defined by
the Private Securities Litigation Act of 1995.  Forward-looking statements
include, without limitation, statements regarding the adequacy of the
Company's reserves for discontinued operations and other statements regarding
the Company's beliefs.  Investors are cautioned that forward-looking
statements are subject to an inherent risk that actual results may vary
materially from those described, projected or implied herein.  Factors that
may result in such variance include, among others: changes in interest rates,
commodity prices, and other economic conditions; actions by competitors;
changing weather conditions and other natural phenomena; actions by government
authorities; technological developments; future decisions by management in
response to changing conditions; and misjudgments in the course of preparing
forward-looking statements.  Other factors are discussed in the Company's
filings with the Securities and Exchange Commission.



Microllam-Registered Trademark-, Parallam-Registered Trademark-,
TJI-Registered Trademark- Joist and TimberStrand-Registered Trademark- are
registered trademarks of Trus Joist MacMillan a Limited Partnership, Boise,
Idaho

<PAGE>

                           TJ INTERNATIONAL, INC.
                                  PART II
                             Other Information

Item 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

      At the Company's May 27, 1998 annual meeting of stockholders, the
      following matters were voted upon and approved by the stockholders
      as indicated:

                                                Votes Cast              
                                    ------------------------------------
                                                Against or
Description                         For         Withheld    Abstentions
-----------------------------       ----------  ----------  ------------
      
      1. To elect as directors the 
         following individuals

      FOR TERMS EXPIRING AT THE 2001
      ANNUAL MEETING

            Thomas H. Denig         15,118,787   236,788         -            
            
            Steven C. Wheelwright   15,123,305   227,752         -

            
      2. Ratification of Appointment
         of Arthur Andersen LLP as
         Independent Accountants for
         the Company                15,116,276   139,177       93,147
            

Item 6.     EXHIBITS AND REPORTS ON FORM 8-K

            (a)   Filed as an exhibit to this report is the following:
      
                  (27)  Financial Data Schedule

            (b)  No reports on Form 8-K were filed during the quarter.
<PAGE>


                              TJ INTERNATIONAL INC.
                                   SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                    TJ INTERNATIONAL, INC.

                                                    
                                    /s/ Valerie A. Heusinkveld
                                    --------------------------------
                                    Valerie A. Heusinkveld
                                    Vice President, Finance & Chief
                                       Financial Officer

                        
Date:   August 18, 1998
<PAGE>

                        SECURITIES AND EXCHANGE COMMISSION
            
                            WASHINGTON, D.C.  20549

                              EXHIBITS TO FORM 10-Q



                    Quarterly Report Under section 13 or 15 (d)

                      of the Securities Exchange Act of 1934

      For the fiscal quarter ended July 4, 1998  Commission File Number 0-7469

                             TJ INTERNATIONAL, INC.

                                EXHIBIT INDEX


Exhibits                                                        Page
---------------------                                       ------------      
                  
(27)  Financial Data Schedule                                Document 2

<PAGE>